MetLife Beats Estimates With Strong Private Equity Gains

(Bloomberg) -- MetLife Inc. is joining an array of investors who are winning big with private equity.

Strong private equity returns in the third quarter helped the biggest U.S. life insurer beat earnings estimates and overcome elevated claims related to Covid-19.

MetLife’s net investment income gained 18% to $5.6 billion, the New York-based company said in a statement Wednesday. Adjusted earnings came in at $2.39 a share, surpassing the $1.71 average estimate of analysts surveyed by Bloomberg. 

Institutional investors are benefiting as buyout firms capitalize on a robust merger and initial public offering market. The four giant U.S. private equity firms including Apollo Global Management Inc. and Blackstone Inc. handed back $45 billion to investors in the last quarter.

Other highlights:

• Total net income was $1.5 billion, up from $633 million a year earlier,
• Adjusted premiums, fees and other revenues excluding pension risk transfers rose 1% to $11.4 billion.
• The group benefits business saw adjusted earnings fall 72% to $111 million, with Covid-19 claims hurting group life underwriting.

MetLife shares have gained 39% this year through Wednesday.

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